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Why Do You Need Health Insurance at the Age of 25?

Aniket Thakkar Aniket Thakkar 09 March 2016
5.0 (1 votes)

Hitting mid-20s implies work responsibilities, tax liabilities and much more. Know how health insurance is crucial at this stage of your life.

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You are in your mid-20s and haven’t really thought about health insurance. Perhaps you think it is too early for you or you think that you don’t need one at all. But buying health insurance can help you immensely.

If you are not convinced, read on to know why this is the right time for you to buy health insurance.

Cover against the unexpected

As a young and healthy adult, you might believe that you do not need a health insurance policy at this stage. But illnesses and injuries cannot be planned or predicted. Fortunately, a basic healthcare plan can get you the treatment you need without any hassle. For example, Gaurav, a 24-year-old media consultant, understood the importance of health insurance when his close friend had to be operated for gall bladder stones.

Low-cost safety net

At 25, you are just starting out with your life. You are possibly single and planning to get married in a few years. The most important benefit of considering a health insurance at this point is the low premium you will have to pay. The insurance company considers you ‘low risk’ and provides the policy at a comparatively lower cost, making it a win-win situation for you.

Keeps your savings intact

You have just started carving out a career for yourself. At this stage, even a small, unforeseen accident can be a major setback and can eat into most of your savings. Take the case of an IT engineer, Rohit, who learned it the hard way. He did not get a health insurance plan. Then the unexpected happened: Rohit met with a bike accident and the high cost of medical treatment ran through his hard-earned savings.

A friend indeed

Whether you are working in a different city or staying with your parents, at 25, you would not want to ask anyone else for money. Healthcare plans take care of medical emergencies and ensure that you have the funds to cover treatment for ill health and injuries. For example, Sharda was not convinced when she took out her first health insurance cover at 26. It paid off when she lost her job and had to undergo an emergency surgery weeks later.

A post-wedding guarantee

From the moment you decide to get married, your responsibilities increase manifold. It is not just only about you anymore; you now have your better half to think about as well. A health insurance cover is an efficient way to manage some of these responsibilities. For 25-year-old Meera, her insurance was more than just a good plan. Her insurance cover paid for all the medical expenses that arose due to an unplanned pregnancy.

Upgrade for less

When you buy health insurance at 25, you may not have life all figured out and a basic cover will suffice. But as life progresses, you will see your needs change. If you already have a health insurance policy, a top-up cover can enhance your protection at a small extra cost. For example, Sumit, who started out with a basic cover with his preferred insurance vendor, was grateful when they offered him some great low-cost riders later on.

Tax relief

You will be pleasantly surprised at the tax benefits a simple health insurance plan can give you. If you were not already aware, Section 80D of the Income Tax Act provides tax benefits on health insurance. You can reduce your taxable income by as much as Rs. 25,000, if the plan covers only or even your spouse and children. (To know more about the tax relief you can avail on health insurance premium, click here.)

All we can say is, it is better to start young with your health insurance and reap the benefits that come with your ‘low-risk’ profile, rather than wait till you turn 30 and get caught up in lifestyle diseases.

Recommended Read: Questions you have been asking about Tax Deduction on Health Insurance

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Aniket Thakkar
Written by Aniket Thakkar
He lives off TV shows, movies, junk food, comics and sarcasm. When he is not working as a freelance imaginary friend to other beings like him, he works as VP of Marketing at Coverfox.